Wednesday, April 13, 2011

Carbon tax compensation means higher taxes

Can we all please all understand that using the Carbon Tax as a source of revenue for compensation means higher overall taxes? The whole point of the Carbon Tax is to reduce CO2. Which means if it work, the revenue base will shrink. However the demand for compensation will still remain. So were do you think the money is going to come from?

Mr Combet said China, the world's biggest polluter, was also the world's largest manufacturer of solar panels and wind turbines, and was investigating carbon pricing schemes in six regions.

The minister confirmed that under the scheme now being put together, pensioners, low and middle income earners would get more than 50 per cent of the revenue from carbon pricing to cover price increases

And some would be better off once the rebates were made.

The Greens carbon price negotiator, Christine Milne, said she supported "half the revenue from pricing pollution to help householders.''

"The Multi-Party Climate Committee is still working on the details of how this assistance will be delivered to householders, but there is complete agreement that it will be generous,'' said Senator Milne.

"There is also tremendous potential for householders and businesses to save more money and cut more pollution through upgrading their energy efficiency.''